Question 1

The valuations in an earned value management analysis must be either profits or revenue.

Accepted Answer

The valuations could be based on either a value measure (revenue or profit) or a cost measure.

Question 2

The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs.

Accepted Answer

The costs associated with sustaining the project are termed project indirect costs: overhead, facilities, and resource opportunity costs.

Question 3

Derivative projects are those that address incremental changes to products or processes.

Accepted Answer

Derivative projects are those that produce incremental changes such as new-product packaging or no-frills versions.

Question 4

Using the time-cost CPM model, the crash time is the shortest possible time allowed for each activity in the project.

Accepted Answer

Crash time (CT) is defined as the shortest possible activity time.

Question 5

Breakthrough projects are those that provide fundamental improvements to existing products.

Accepted Answer

Breakthrough projects involve major changes that create entirely new markets.Platform projects are those that provide fundamental improvements to existing products.

Question 6

Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion.

Accepted Answer

Project management software commonly includes CPM and Gantt charting features to help with project scheduling and tracking.

Question 7

A project milestone is a specific event to be reached by a particular point in time.

Accepted Answer

Specific events to be reached at points in time are called project milestones.

Question 8

The critical path in a CPM analysis is found by locating the activities times with zero slack.

Accepted Answer

The critical path is the longest sequence of connected activities through the network and is defined as the path with zero slack time.

Question 9

One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.

Accepted Answer

From the text, we are assuming that the activity times are known.Hence, each activity must have clear beginning and ending points.

Question 10

In a CPM analysis, if you subtract the early start from the late start, the result is the activity's slack time.

Accepted Answer

The difference between the late start time and early start time is the slack time.

Question 11

In a CPM analysis, if you subtract the late finish from the early finish, the result is the activity's slack time.

Accepted Answer

The difference between the late start time and early start time is the slack time.

Question 12

One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked.

Accepted Answer

Determine the required sequence of activities and construct a network reflecting the precedence relationships.

Question 13

Earned value management (EVM) is a technique for measuring project progress in an objective manner.

Accepted Answer

EVM is a technique for measuring project progress in an objective manner.

Question 14

When reducing the planned duration of a project using the time-cost CPM model, we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.

Accepted Answer

The easiest way to proceed is to start with the normal schedule, find the critical path, and reduce the path time by one day using the lowest-cost activity.

Question 15

Earned value management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project.

Accepted Answer

EVM has the ability to combine measurements of scope, schedule, and cost in a project.

Question 16

Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information.

Accepted Answer

One motivation for using a late start schedule is that savings are realized by postponing purchases of materials, the use of labor, and other costs until necessary.Using an early start schedule allows handling unforeseen circumstances on noncritical activities without disrupting critical path activities.

Question 17

You are managing a project and need to cut the cost of the project.You decide to transfer workers to another job to cut the project's costs.Costs associated with transferring the workers are an example of project indirect costs.

Accepted Answer

The costs associated with expediting activities are termed activity direct costs and add to the project direct cost.Some may be worker related, such as overtime work, hiring more workers, and transferring workers from other jobs; others are resource related, such as buying or leasing additional or more efficient equipment and drawing on additional support facilities.

Question 18

A project can be subdivided into which of the following?
A)Job orders
B)Sub-jobs
C)Work packages
D)Sub-paths
E)Events and decisions

Accepted Answer

A work package is a group of activities combined to be assignable to a single organizational unit.The other elements named are not commonly used in project management.

Question 19

In the time-cost CPM model, cost is assumed to be a linear function of time.

Accepted Answer

We assume a linear relationship between time and cost.This assumption is common in practice and helps us derive the cost per day to expedite.

Question 20

The activity direct costs associated with a project might include giving workers overtime to complete a project in less than the expected time.

Accepted Answer